Concepts and definitions
- Accrued expenses and deferred income
Accrued interest and other expenses as well as deferred interest and other income, adjusted or supplemented on an accrual basis.
- Accrued income and prepayments
Accrued interest and other income as well as prepaid interest and other expenses, adjusted or supplemented on an accrual basis.
- Administrative expenses
Salaries and fees: salaries, wages and fees (including holiday pay), i.e. all items subject to withholding tax and attributable to the accounting period, including severance pay.
Staff-related costs: pension liabilities and pension premiums paid under the Employees' Pensions Act and attributable to the accounting period, social security contributions and other mandatory insurance fees.
Other administrative expenses: e.g. catering, health care, recruitment, recreation, education, travel, office, coputer, marketing, entertainment, R&D, and other such expenses that are not treated as staff-related expenses.
- Appropriations
Increases/decreases in the accumulated depreciation difference to be considered in determining taxable income, and increases/decreases in voluntary provisions deductible for tax purposes.
- Commission income
Fees and commission income from credit granting, market making and other financial brokering, as well as from the provision of guarantees and other off-balance sheet commitments, foreign exchange services, securities brokering, handling of trust department commissions and payment transactions, securities lending and other services of a similar nature.
- Debt securities
Debt securities comprise all marketable debt instruments, such as Treasury bills, securities issued by municipalities, bank certificates of deposit, commercial papers, bonds and convertible bonds.
- Debt securities eligible for refinancing with central banks
Debt securities eligible as collateral in central bank monetary policy operations.
- Debt securities issued to the public
Bonds, certificates of deposit and other comparable marketable bearer bonds and promissory notes made out to order and issued by a credit institution.
- Deferred tax assets and tax liabilities
Deferred tax assets and liabilities arising from timing differences and other temporary differences.
- Depreciation, amortisation and impairment of tangible and intangible assets
Depreciation, amortisation and impairment of tangible and intangible assets include 1) depreciations according to plan, based on the passage of time, and 2) impairment write-downs based on a probable permanent decrease in the asset's market value.
- Derivative instruments
Premiums paid for derivative instruments, including positive fair values of derivative instruments included among assets.
- Fees and commission expenses
Fees and commission expenses paid to third parties for services (Cf. under "Commission income"). Fees and commissions paid for securities or real estate transactions may be set up as an asset and treated as part of the acquisition cost of the security or real estate.
- Impairment losses on loans and other commitments
Impairment losses on receivables from credit institutions and on loans and advances to the public and general government, as well as impairment losses from off-balance sheet commitments.
- Income and expenses from other than ordinary activities
Income and expenses pertaining to exceptional and non-recurring events which are not part of the ordinary business of the credit institution.
- Income from equity investments
Dividends, income from mutual fund units and similar income paid from a company's distributable funds.
- Intangible assets
Intangible rights and assets acquired against a consideration (e.g. concessions, patents, licenses and trademarks). Intangible assets generated through internal development activities can be included on a prudent basis.
- Interest expenses
Interest expenses include interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the loan principal. Also included are issue losses incurred in connection with loans issues as well as fees and commissions on loans received, to the extent that these losses or commissions are attributable to the accounting period. Not included are fees in compensation of direct administrative expenses related to the granting of the loan.
- Interest income
Interest income includes interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the amount of principal.
Also included are: the difference between the nominal value and the purchase price of acquired receivables to the extent that it is attributable to the accounting period; the difference between the resale price and purchase price of securities or other assets bought under repos imposing obligations on the investment firm and its contracting party during the validity of the agreement; and gains of an interest nature resulting from derivative instruments.
Fees and commissions which are comparable to interest income are allocated as interest income over the loan's maturity period.
- Irrevocable commitments given in favour of a customer
Securities sale contracts which include a put option whereby the buyer may sell the securities back to the credit institution if he so wishes. Includes forward deposits, the unpaid amount of partly-paid securities, underwriting obligations, binding standby facilities and unused credit limits.
- Leasing assets
The undepreciated balance of the acquisition cost of the assets subject to lease, including any advance payments made in respect of the assets.
- Liabilities to the public and general government
Liabilities to other than credit institutions and central banks.
- Liguid assets
This item comprises Finnish and foreign notes and coins, cheques and bankers' drafts as well as other similar payment instruments. The item also comprises claims on central banks repayable on demand.
- Loans and advances to the public and general government
Credits extended to the public and general government, as well as receivables of a similar nature.
The public includes households, enterprises, non-profit corporations, insurance corporations and other financial institutions except credit institutions.
General government includes the State, municipalities, joint municipal authorities, the regional government of the Åland Islands, employment pension institutions and other social security funds.
- Net gains from securities and foreign currency transactions
Positive or negative difference (trade margin) between sales price and book value of debt securities, shares and participations belonging to the financial assets of a credit institution.
Positive and negative exchange differences resulting from currency exchange and from translating foreign-currency items (assets, debts and currency swap contracts) into domestic currency.
- Net income from available-for-sale financial assets
Net income from financial assets that a company holds, often for an extended period of time, with the intent of selling them at a convenient opportunity.
- Net income from hedge accounting
Hedging involves the use of e.g. derivative instruments for the purpose of eliminating risks relating to e.g. interest rate, exchange rate or commodities price developments.
- Net income from investment property
Net income from land or buildings not in the company's own use. Assets are held for capital appreciation or rental income.
- Net income from leasing operations
Rents from leasing contracts minus planned depreciation of leasing assets. Also included are additional depreciation of leasing assets and capital gains as well as losses from the sale of leasing assets, fees charged to customers and other income and expenses directly pertaining to leasing contracts. Other income and expenses pertaining to leasing contracts are reported as profit and loss account items under the corresponding type of income or expense.
- Non-performing asset
A non-performing asset derives from a breach of contract. An asset becomes non-performing when payment of interest on it, or its principal or part thereof has been in arrears for 90 days.
- Other assets
Receivables from payment transactions, receivables on various settlement accounts, margin receivables related to derivative instruments and other receivables not reported under any other item in the balance sheet.
- Other liabilities
Liabilities related to payment transactions, accounts payable and other liabilities unrelated to the granting of credit, as well as statutory provisions.
- Other operating expenses
Rental expenses and other expenses attributable to owner-occupied property, including rental expenses for machinery and equipment, merger losses, insurance and other security costs, supervision, inspection and membership fees as well as other similar expenses which are not attributable to other items.
- Other operating income
Gross rental income from real estate, as well as gross dividend income and rental income from real estate corporations, commissions and fees paid for administrative services etc. by businesses belonging to the same group or consolidation group, as well as other income from the ordinary business of the credit institution.
- Revaluation accounts
Revaluation of land and water areas, including revaluation of shares in real estate companies.
- Shares and participations
Shares, primary capital or investment units and other participations that confer a right to the equity of a company. Mutual fund shares and certificates conferring right to subscription to or income from such shares or units are treated as shares and units. Shares and participations in real estate companies are not included.
- Shares and participations in group companies
Shares and participations in subsidiaries as defined in the Book-keeping Act, shares and participations in real estate companies not included.
- Subordinated liabilities
Debt securities issued by a credit institution under conditions of subordinate priority relative to other liabilities incurred by the credit institution. The item also includes perpetuals and other subordinated hybrid capital instruments.
- Tangible assets
Tangible assets include real property (e.g. buildings, undeveloped land and water areas, property interests held under a lease, or shares and units in real estate companies) and other tangible assets, e.g. computer equipment, other office machinery and equipment, art objects, numismatic collections, vehicles, and machinery and equipment for property maintenance.
- Turnover
Credit institutions' and investment firms' turnover include the following items: Interest income + Leasing income + Income from equity investments + Commissions and fees + Net income or net losses from securities and foreign exchange transactions + Other operational income.
Also included after transition to IAS/IFRS-compliant reporting on 1 January 2005 are: Net income from available-for-sale financial assets + Net income from hedge accounting + Net income from investment property.
- Unpaid subscriptions to share issues, investment unit issues or primary capital issues
Total amount of unpaid subscriptions to share issues, investment unit issues or primary capital issues prior to payment or annulment of the subscription.
Official Statistics of Finland (OSF):
Financial statement statistics on credit institutions [e-publication].
Helsinki: Statistics Finland [referred: 26.5.2012].
Access method: http://www.stat.fi/til/llai/kas_en.html.
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